ELSWEDY ELECTRIC (EG), a company active in the Electrical Components & Equipment industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date December 24, 2021, the closing price was EGP ...
TOPLINE IN LINE WITH ESTIMATES; MARGINS COOL OFF; NET DEBT RISES SWDY reported a neutral set of 3Q21 consolidated results showing an attributable net profit of EGP704 million (below our estimates by 24%, dropping 14% YoY and 21% QoQ). NPM declined to 4.7% (-2.5pps YoY and -1.8pps QoQ). The lacklustre bottom line was a result of weaker margins across all segments except for renewables despite high revenue growth enticed by the wires & cables segment (50% of revenues, +57% YoY, 14% QoQ) and Ele...
SOLID REVENUE GROWTH ALONG WITH HEALTHY MARGINS NET DEBT RISES SWDY reported a robust set of 2Q21 consolidated results showing an attributable net profit of EGP890 million (beating our estimates by 24%), surging by 73% YoY and by 27% QoQ. NPM inched up to 6.5% (+1.0pps YoY and 0.8pps QoQ). The company had a strong quarter on both an annual and quarterly basis owing to strong revenue growth seen across all segments except for renewables and meters. All eyes are on the Wires and Cables segment ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
OC offers 14% dividend yield in 2021e. OC distributed USD0.46/share in 2020, and we expect this to rise to USD0.67/share in 2021 and USD0.73/share in 2022 (distributed semi-annually), on rising profitability and a liquid balance sheet. This is equivalent to a yield of 14.4% in 2021e and 15.7% in 2022e (based on the EGX)—the highest in our Egypt universe, and vs. 1.7% and 2.3% for global construction peers. OC trades on a 2022e P/E of 4.4x, 63% below peers, which we see as unjustified. Net incom...
In this report we assess the average material prices for 2Q21 and depict the impact of pricing trends on the financial performance of the relevant listed equities in Egypt. Prices of raw materials in the food and beverages sector continued to normalize in 2Q21, except for prices of SMP and WMP. Accordingly, we expect a gradual recovery of margins to appear in the 3Q21 results of JUFO, EFID, DOMT and OLFIas price increases kick in and with seasonality of revenues. Most companies have an invent...
WIRES AND CABLES STEAL THE SHOW SWDY reported a robust set of 1Q21 consolidated results showing an attributable net profit of EGP700 million, surging by 75.0% YoY but down by 46.0% QoQ due to seasonality. NPM recorded 5.7% (+2.0pps YoY but -3.0pps QoQ). The company had a strong quarter on annual basis despite weaker sequential performance due to seasonality where Q4 is typically the strongest quarter especially for the Turnkey segment. The key highlight is the Wires and Cables remarkable perf...
We present the 1Q21 material prices that are relevant to the petrochemical, consumer and industrial & materials sectors. In our 12-page report, we depict the impact of such changes on the financial performance of listed equities in Egypt. We also present the quarterly breakdown of each sector. Most companies have inventory of raw material that covers somewhere around 2-3 months. The increase in raw material costs is slowing down in 2Q21. Accordingly, we expect the pressure on margins to appe...
HEALTHY FINANCIAL PERFORMANCE AND PROMISING EXPANSION PLANS TO DRIVE GROWTH Elsewedy Electric has held ground in 2020 despite challenges caused by the pandemic in 1H20. The company ended the year with a stable topline figure of EGP46,402 million in FY20, down by 0.5% YoY. The bottom line was negatively impacted by lower margins and recorded EGP3,028 million, dropping by 24.7% YoY but has beaten our estimates by 15.7%. We expect the company to deliver topline growth of 11% in FY21 recording EG...
On the ground updates * The management is very optimistic on 4Q20 results and hopes it would be one of the best quarters in such a challenging year. They are also very optimistic about 2021 especially since there are no signs of lockdowns in Egypt and everything is operational, and all their factories are operational too * Management has stressed that they were confident that the relatively weak performance seen in 2Q20 won’t persist and they expected 2H20 to see a recovery which indeed...
Summary Mohammad Al-Mojil Group - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Mohammad Al-Mojil Group (MMG) is a construction company. It provides general contracting services for onshore and offshore oil and gas, and petrochemical projects. It offers constructi...
STRONG SEQUENTIAL PERFORMANCE LED BY THE TURNKEY SEGMENT SWDY reported a strong set of 3Q20 consolidated results showing an attributable net profit of EGP818 million, slightly down by 1.4% YoY but significantly up by 59.0% QoQ, NPM increased to 7.2% (+0.8pps YoY and +1.7pps QoQ). The company had a remarkably strong quarter which saw strong performance across most segments but the turnkey’s performance significantly stood out on 15.3% sequential growth in revenues and robust GP margin of 16.4%...
The independent financial analyst theScreener just requalified the general evaluation of ARABTEC HOLDING SUSP - SUSP.24/09/20 (AE), active in the Heavy Construction industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Negative. As of the analysis date September 25, 20...
MARGINS AND RENEWABLES CUSHION THE DROP IN CABLES VOLUMES SWDY reported 2Q20 consolidated attributable net profit of EGP514 million, down 44.8% YoY but up 28.5% QoQ. Despite the sequential drop in revenues and the absolute value of gross profit in all segments except for meters and renewables, the bottom line has seen improvements mainly driven by 1) higher gross margin and lower SG&A spending and other operating expenses, 2)higher other operating revenues, 3)higher net interest income of EGP...
Our full report contains our analysis of MSCIEM Index rules and its application on constituents from Egypt, both for the Standard Index and Small Cap Index. Below are our key conclusions: SWDY Facing Risk of Exclusion; HRHO Is Replacement Candidate On the last ten business days of July, if SWDY dropped more than 50% below Market Size-Segment Cutoff, then the stock will face exclusion. If, on that same relevant date, HRHO's free-float market cap surpassed SWDY's free-float market cap, then HRH...
COMPANY LIKELY TO SHELF EXPANSION PLANS In light of the current circumstances, we expect the company to reduce or even completely put on hold its expansion plans in an attempt to reserve cash and boost liquidity. Our previous buy call rested on growth driven primarily by 1) the turnkey segment and 2) acquisitions. GROSS PROFIT/TON TO DIP BELOW THE USD700 MARK We previously expected wires and cable segment to slightly decline in FY20 on the back of strengthening EGP and weakening commodity pri...
Best play on the sector, upgrade TP on improving outlook. OC offers ideal exposure to the MENA construction sector, trading at a highly attractive 2020e EV/EBITDA and P/E of 0.5x and 3.8x, respectively, while offering a 2019-21e EPS CAGR of c14%. This comes on top of a lucrative 2020e dividend yield of 9.2%, stemming from a 2020e payout ratio of 35%. An upward revision of our 2020e assumptions (revenue and net income revised by c11% and c13%, respectively, on a 16% upward revision of 2019e award...
OC reported 3Q19 revenue of USD790mn, up 8.3% y/y and down 0.1% q/q. MENA accounted for 65.1% of revenue in 3Q19 vs 73.3% in 2Q19 and 68.3% in 3Q18. EBITDA came in at USD57mn in 3Q19, down 2.2% y/y and 20.5% q/q, owing to provisions booked related to MEI in the US. Attributable net income came in at USD32mn, up 10.7% y/y and 2.9% q/q. The 81.2% sequential improvement in MENA attributable net income was offset by the USD21mn loss generated from US operations. BESIX contribution to bottom line rec...
Saudi construction market to outperform, replenishing the region’s backlog. 2019 marks a strong comeback for the Kingdom, with 2019 y-t-d award intake recording an 82% hike to USD29bn, boosted by aggressive investments in the oil, gas, and water segments. This represents 38% of MENA 2019 y-t-d new awards of USD75bn (-13% y-o-y), compensating, to a large extent, for the 40% and 70% drop in the UAE and Egypt’s awarded projects. The Kingdom’s 2019-20e pipeline includes USD70bn worth of projects (ou...
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